Service fees in first year

[Debt Free]

So for some time now, LC changed their policy of no service fees during the first year, and that is what I've observed.  Finally got my SEP IRA opened with them, money moved and invested, and starting to receive payments.  Each payment received was normal (no Service Fee), but then this one...

Due Date  Settlement Date  Payment  Principal Portion  Interest Portion  Principal Balance  Late Fees  Investor Fees  Pmt Status
                                            Amount   of Payment           of Payment
12/1/16    --                       $0.89       --                        --                        --                          --             --                    Scheduled
11/1/16   11/4/16              $0.74       $0.54                 $0.20                  $24.46                 $0.00       ($0.01)          Completed
Recurring payment date changed to 1st per approved borrower request Info

See below for the actual issue I'm questioning.

Another bug???

[storm]

I think you are confused.  Lending Club still charges a 1% servicing fee on all loan payments in an IRA-type account.  The self-directed IRA custodian fee ($100) is waived the first year with a $5k deposit and subsequent years as long as you keep $10k invested.

[yojoakak]

Is this what he means? If so he's definitely confused.

"Beginning in Q4 2014, we will limit the size of the service fee charged to an investor during the first 12 months after a Note is issued in order to protect investor returns in the event of a prepayment.  For those 12 months, an investor will never pay a service fee greater than 1% of the contractual monthly payment amount."


http://www.lendacademy.com/forum/index.php?topic=3074.msg27813#msg27813


He should post a link directly to the note so we have a better idea of what he's trying to say.

[Debt Free]

Sorry, coming off a double shift and my brain was a bit mush when I was reviewing the account.  In hindsight, yes, the $0.01 is normal the first year.  I was thinking about when a loan pays off in the first year (payoff service fee will still be $0.01).

Yojoakak's link is what I was thinking about.

The reasoning with my earlier question was the result of looking at the 2-3 other recent payments in the same time frame.

Charged a $0.01 fee:
https://www.lendingclub.com/account/loanPerf.action?loan_id=91219065&order_id=129861433&note_id=139634922

NOT charged a $0.01 fee:
https://www.lendingclub.com/account/loanPerf.action?loan_id=92213493&order_id=131120741&note_id=140884947##
https://www.lendingclub.com/account/loanPerf.action?loan_id=90208616&order_id=129471111&note_id=139267764
https://www.lendingclub.com/account/loanPerf.action?loan_id=92213493&order_id=131120741&note_id=140884947

[storm]

Sorry, coming off a double shift and my brain was a bit mush when I was reviewing the account.  In hindsight, yes, the $0.01 is normal the first year.  I was thinking about when a loan pays off in the first year (payoff service fee will still be $0.01).

Yojoakak's link is what I was thinking about.

The reasoning with my earlier question was the result of looking at the 2-3 other recent payments in the same time frame.

Charged a $0.01 fee:
https://www.lendingclub.com/account/loanPerf.action?loan_id=91219065&order_id=129861433&note_id=139634922

NOT charged a $0.01 fee:
https://www.lendingclub.com/account/loanPerf.action?loan_id=92213493&order_id=131120741&note_id=140884947##
https://www.lendingclub.com/account/loanPerf.action?loan_id=90208616&order_id=129471111&note_id=139267764
https://www.lendingclub.com/account/loanPerf.action?loan_id=92213493&order_id=131120741&note_id=140884947

The first loan had a payment of $.74, so they rounded up to a penny on the fee.  The third loan had a payment of $.45, so it did not round up.  I think LC does keep track of fees in fractions of a cent, so you'll likely incur a fee on the 2nd payment for this loan.  The second and fourth loans are the same and were paid off shortly after it was issued, and I wouldn't complain about them not charging a fee on that.

If someone wants to check my work, change the word "account" in the links to "foliofn" to be able to view it.

[Debt Free]

No complaints.  Just used to seeing the $0.01 from day one.  I'm pretty sure I'd read something on their site explaining that they do track the fractional payments and they are added up over time.

Thanks for the tip on how to let others view the note.

[anabio]

No complaints.  Just used to seeing the $0.01 from day one.  I'm pretty sure I'd read something on their site explaining that they do track the fractional payments and they are added up over time.

Bring up your activity screen and hover your cursor over the .01 entry. A second or so later the actual fee will pop up exact to the 10th decimal place...yes they do track fractions.

[fliphusker]

Here are 2 FOLIO notes that made me pull my hair out because of the service fees.
This one paid a huge chunk off in the 11th month and fully paid the next month forcing me to eat the service fee.
https://www.lendingclub.com/account/loanPerf.action?loan_id=12295036&order_id=121693574&note_id=41240336
This one I assume I got smacked with the service fee as it was in its 13th month when they fully paid. 
https://www.lendingclub.com/account/loanPerf.action?loan_id=46350649&order_id=118890574&note_id=78726906##
While I did not make much on either, I did not lose money either.

[Debt Free]

5036 paid in the 28th month from what I see.
0649 paid in the 15th month.

Unless I'm missing something.  Or did you purchase the notes mid-term off of FolioFn?

[fliphusker]

Nope, your right, I read them wrong.  My brain is a bit mushy today.  Guess I need to quit listening to nonsense on talk radio.